What schemes are available for first-time buyers UK 2026?

Available schemes for first-time buyers in 2026 include: Shared Ownership (buy 25-75% of a property and pay rent on the rest); Lifetime ISA (government adds 25% bonus up to £1,000/year on savings up to £4,000/year, used for first property); First Homes scheme (discounted new builds at 30-50% below market value for local first-time buyers); and the Mortgage Guarantee Scheme (allowing 95% LTV mortgages). The Help to Buy Equity Loan scheme ended in March 2023 and is no longer available.

How much deposit do I need to buy my first home in the UK?

The minimum deposit for most mortgages is 5% of the purchase price (95% LTV). On an average UK house price of £273,000-£301,000, a 5% deposit is £13,650-£15,050. However, better mortgage rates are available with 10% (£27,300-£30,100) or 15%+ deposits. The larger the deposit, the lower your monthly mortgage payment and interest rate.

How much can I borrow for a mortgage UK?

Most mortgage lenders will lend up to 4-4.5 times your annual income. Some lenders will stretch to 5-5.5 times income for higher earners or professionals. Two applicants can combine their income. At 4.5x income: a single applicant earning £35,000 can borrow approximately £157,500; a couple earning £35,000 each can borrow approximately £315,000.

What credit score do I need for a mortgage UK?

There is no single credit score for mortgage approval. Lenders use their own scoring systems. Broadly, you need: no recent defaults or CCJs; a history of paying bills on time; to be on the electoral roll; ideally 1-3 years of credit history. Check your credit report with Experian, Equifax or TransUnion before applying. Any errors on your report can delay or prevent a mortgage approval.

First Time Buyer Guide UK 2026: Help to Buy, Shared Ownership, Deposits & Mortgages

First Time Buyer Guide UK 2026: Schemes, Deposits & Getting a Mortgage

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 4 Apr 2026

Last reviewed 4 Apr 2026

✓ Fact-checked

First-time buyers accounted for close to 2 in every 5 property purchases in 2025 — and conditions are improving in 2026 as mortgage rates fall and income growth improves affordability. Here's the complete guide. Updated April 2026

Step-by-Step: How to Buy Your First Home

Step	What to Do	Timeline
1. Check affordability	Use mortgage calculator; aim for max 4-4.5x income borrow	Start of process
2. Save deposit	Minimum 5%; aim for 10%+ for better rates; use LISA if eligible	6-24 months before buying
3. Check credit report	Experian, Equifax or TransUnion (free); fix any errors	3-6 months before applying
4. Get mortgage in principle	Apply to 1-2 lenders; shows sellers you're serious; no hard credit check usually	Before house hunting
5. Find a property	Rightmove, Zoopla, OnTheMarket; use estate agents	When ready
6. Make an offer	Research comparable sold prices; negotiate	When you find the right home
7. Instruct a solicitor	Get conveyancing quotes before you need them	As soon as offer accepted
8. Formal mortgage application	Full application with all documents; survey booked	After offer accepted
9. Exchange contracts	Legal commitment; pay deposit to solicitor	4-12 weeks after offer
10. Completion	Keys! Pay stamp duty (via solicitor within 14 days)	Agreed date after exchange

First-Time Buyer Schemes — 2026

Scheme	How It Works	Key Eligibility	Best For
Lifetime ISA (LISA)	Save up to £4,000/year; government adds 25% bonus (max £1,000/year). Use for deposit on first home up to £450,000.	Age 18-39; first-time buyer; property up to £450,000	Those 3+ years from buying — builds substantial bonus
Shared Ownership	Buy 25-75% share; pay rent on remaining share; can 'staircase' up to 100%	First-time buyer; income limits apply (typically under £90,000 outside London)	Those who can't afford full purchase; urban areas
First Homes	New builds at 30-50% below market value; discount preserved on resale	Local connection requirement; income cap typically £80k (£90k London)	Those in high-demand local areas
Mortgage Guarantee Scheme	Government guarantees part of 95% LTV mortgages; enables lenders to offer 5% deposit deals	First-time buyers and home movers; properties up to £600,000	Those with small deposits
Right to Buy	Council tenants can buy their home at significant discount	Must have been a public sector tenant for 3+ years	Council/housing association tenants only

Lifetime ISA — Is It Worth It?

The Lifetime ISA offers a 25% government bonus on up to £4,000/year — meaning up to £1,000 free money per year. Over 5 years: you save £20,000 + receive £5,000 in bonuses = £25,000 for a deposit. Restrictions: must be aged 18-39 when you open it; property must cost £450,000 or less; you must be a first-time buyer; withdrawing for any other reason before 60 attracts a 25% penalty (which effectively claws back more than just the bonus). Best LISAs in 2026: Moneybox, Skipton and Nottingham Building Society offer competitive rates. Compare at moneysavingexpert.com.

How Much Deposit Do You Need?

Deposit Size	LTV	Average Mortgage Rate (Approx.)	On a £250,000 Property
5%	95%	~5.5-6%	£12,500 deposit
10%	90%	~4.8-5.2%	£25,000 deposit
15%	85%	~4.5-4.8%	£37,500 deposit
20%	80%	~4.3-4.6%	£50,000 deposit
25%+	75%	~4.1-4.4%	£62,500+ deposit

Mortgage rate estimates based on market rates April 2026 (Bank of England base rate 3.75%). Actual rates depend on your credit profile, lender and fixed vs tracker. Always compare quotes from multiple lenders or use an independent mortgage broker.

First-Time Buyer Stamp Duty

In 2026, first-time buyers pay: 0% on properties up to £300,000 (full exemption); 5% on the portion from £300,001 to £500,000; standard rates on properties above £500,000 (relief not available). Example: buying at £350,000 as a first-time buyer = 0% on £300,000 + 5% on £50,000 = £2,500 stamp duty (vs £7,500 for a standard buyer). This changed in April 2025 when the temporary £425,000 nil-rate threshold expired.

KAELTRIPTON VERDICT

Conditions for first-time buyers are improving in 2026 — mortgage rates are falling, income growth is helping affordability, and first-time buyers represent close to 2 in 5 purchases. Key priorities: open a Lifetime ISA if you're eligible (free £1,000/year government bonus); save at least 10% deposit for better rates; get a mortgage in principle before house hunting; budget for stamp duty, solicitor fees and survey costs on top of your deposit.

First-Time Buyers Conditions Improving 2026

Q: What first-time buyer schemes are available 2026?

A: Lifetime ISA (25% bonus up to £1,000/year), Shared Ownership, First Homes (30-50% discount), Mortgage Guarantee Scheme (95% LTV mortgages). Help to Buy ended March 2023.

Q: How much deposit do I need?

A: Minimum 5% (95% LTV). Better rates from 10%. On £273,000 average (Nationwide): 5% = £13,650; 10% = £27,300.

Q: How much can I borrow for a mortgage?

A: Typically 4-4.5x annual income. Two applicants can combine income. Some lenders offer 5-5.5x for higher earners.

Q: What is the stamp duty for first-time buyers 2026?

A: 0% up to £300,000; 5% on £300,001-£500,000; standard rates above £500,000. Relief reduced from previous £425,000 threshold.

This article is for informational purposes only and does not constitute financial or property advice. House prices and mortgage rates change frequently. Always seek independent financial advice before making property decisions. All figures verified April 2026.

Kael Tripton

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First Time Buyer Guide UK 2026: Schemes, Deposits & Getting a Mortgage

Step-by-Step: How to Buy Your First Home

First-Time Buyer Schemes — 2026

Lifetime ISA — Is It Worth It?

How Much Deposit Do You Need?

First-Time Buyer Stamp Duty

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